Indian rupee jumps against UAE dirham in early trade

US Federal Reserve's decision to raise the interest rate gives a boost to overall investor sentiment


A Staff Reporter

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AFP file
AFP file

Published: Thu 23 Mar 2023, 9:24 AM

The Indian rupee jumped 27 paise to 82.32 against the US dollar (22.43 versus the UAE dirham) in early trade on Thursday amid a weak American currency and inflow of foreign funds into the Indian equity market.

Traders said declining crude oil prices also supported the rupee. At the Indian interbank foreign exchange, the South Asian currency opened stronger at 82.38 against the dollar, climbing as high as 82.26 and hitting the lowest level of 82.41. Later, the Indian currency was trading at 82.32, registering a gain of 27 paise over its previous closing rate.

On Tuesday, the rupee settled at 82.59 against the US dollar. The foreign exchange market was closed on Wednesday on account of the Gudi Padwa holiday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.23 per cent lower at 102.11.

Global oil benchmark Brent crude futures fell 0.86 per cent to $76.03 per barrel. The 30-share BSE Sensex was trading 340.92 points or 0.59 per cent lower at 57,873.67 points while the broader NSE Nifty was down 84.25 points or 0.49 per cent at 17,067.65 points.

The decision of the US Federal Reserve on Wednesday to raise the interest rate by a quarter of a percentage in line with the market expectations bolstered overall investor sentiments.

Foreign Institutional Investors (FIIs) turned net buyers in the Indian capital market on Wednesday as they purchased shares worth Rs617 million, according to exchange data.

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